REG - Watches of Switzlnd. - FY25 Results
Yesterday 07:00
For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250703:nRSC5924Pa&default-theme=true
RNS Number : 5924P Watches of Switzerland Group PLC 03 July 2025
3 July 2025
Watches of Switzerland Group PLC
FY25 Results
for the 52 weeks ended 27 April 2025
Record revenue driven by improved H2 trading performance
Continued excellent strategic and operational progress
Brian Duffy, Chief Executive Officer, said:
"During the year we grew revenue +8% to a record £1,652 million, delivering +16% growth in the US and +2% in the UK, whilst growing Adjusted EBIT(1) +12% to £150 million, all at constant currency and in line with market expectations.
"I am proud of the strong performance our team has delivered, underpinned by a
significant trading improvement in H2 FY25 with Group revenue +12% vs prior
year. Our US business has continued its excellent momentum, surpassing $1
billion revenue for the first time, bolstered by the acquisition of Roberto
Coin Inc.. The UK has returned to growth as trading conditions have
stabilised. Our performance reflects our differentiated business model, with
our scale and leadership in our chosen markets, supported by long-standing,
collaborative partnerships with world-leading brands across luxury watches and
luxury branded jewellery underpinning sustained growth.
"FY25 was a busy year for the Group as we continued to deliver on our strategy
at pace. A notable highlight was the opening of the new flagship Rolex
boutique on Old Bond Street, London, which is a great example of how we
combine our retailing excellence and operational expertise to deliver a
fantastic project for our brand partners and clients. We also delivered three
key Rolex projects in the US across Texas, Florida and Atlanta, opened a new
Patek Philippe room in Connecticut, and executed a range of additional
showroom openings, expansions and upgrades.
"We are increasingly excited about the possibilities for our recently acquired
Roberto Coin business in North America. Not only has it continued to trade
well since acquisition, we see growing potential for this well-recognised
brand in the large and growing US luxury branded jewellery market. We are
pleased to have launched a marketing campaign featuring Dakota Johnson as a
global brand ambassador and expect this and other pipeline projects to
underpin our growth ambitions for the brand, including the opening of three
mono-brand boutiques.
"We are encouraged by the strong performance of the Rolex Certified Pre-Owned
programme in both the UK and US, and by the sustained growth in our pre-owned
business more generally. Building on our proven M&A track record, we were
delighted to acquire Hodinkee, the leading global digital platform for luxury
watch enthusiasts, further strengthening our online leadership.
"As we look ahead, whilst we are of course remaining mindful of the broader
macroeconomic and consumer environment, including potential US tariff changes,
we remain confident in the strength of our diversified business model, our
strong pipeline of showroom openings and growth projects, and the resilience
of the luxury watch and luxury branded jewellery categories."
52 weeks ended 52 weeks ended YoY change YoY change
£million 27 April 2025 28 April 2024 Reported rates Constant currency(1)
Group revenue 1,652 1,538 +7% +8%
US 786 692 +14% +16%
UK and Europe 866 846 +2% +2%
Adjusted EBITDA(1) 192 179 +8%
Adjusted EBITDA margin(1) 11.6% 11.6% -bps
Adjusted EBIT(1) 150 135 +11% +12%
Adjusted EBIT margin(1) 9.1% 8.8% +30bps
Adjusted EPS(1) (p) 41.6 38.0 +9%
Operating profit 114 120 -5%
Statutory basic EPS (p) 22.8 25.0 -9%
Statutory profit before tax 76 92 -18%
Free cash flow(1) 98 118 -17%
Free cash flow conversion(1) 51% 66% -1,500bps
Return On Capital Employed(1) 19.0% 19.5% -50bps
Net (debt)/cash(1) (96) 1
FY25 Financial Highlights
· Group revenue of £1,652 million, +8% vs FY24 year in constant
currency (+7% reported), in line with market expectations
o Improved second half performance with Group revenue +12% in H2 FY25 vs
+4% in H1 FY25 vs prior year (constant currency)
o Luxury watches(2) revenue +2% in constant currency, +1% reported
§ Demand for our key brands, particularly products on Registration of
Interest lists, remains strong, outstripping supply in both the US and UK
markets
§ Certified Pre-Owned and vintage is performing strongly, with Rolex
Certified Pre-Owned becoming the Group's second largest luxury watch brand
equivalent
o Luxury jewellery(3) revenue +108% in constant currency, +106% reported,
driven by the acquisition of Roberto Coin Inc.
§ Luxury branded jewellery delivered double digit growth
· US revenue of £786 million (including Roberto Coin Inc.), +16%
at constant currency, +14% reported
o Improvement to +19% in H2 FY25 vs +11% in H1 FY25 (constant currency),
following a first half that was impacted by the Q1 increase of showroom stock
levels of key brands to enhance displays and client experience
· UK and Europe revenue of £866 million +2% vs prior year
o Sequential revenue improvement H2 FY25 +6%
· Excellent progress with showroom expansion and refurbishment
programme
o Expansionary capex(4) of £73 million, with four new showrooms opened
and 11 showrooms refurbished/expanded
· Group Adjusted EBIT of £150 million, +12% in constant currency,
+11% reported vs prior year
o Improvement in adjusted EBIT margin to 9.1% (FY24: 8.8%)
· Operating profit as reported on the face of the Consolidated
Income Statement £114 million (FY24: £120 million), -5% on a reported basis
· Free cash flow of £98 million (FY24: £118 million)
· Net debt of £96 million as of 27 April 2025 (28 April 2024 net
cash: £1 million), reflecting the acquisitions of Roberto Coin Inc. and
Hodinkee business
· On 10 March 2025, the Group launched a share buyback programme of
£25 million, in line with our capital allocation policy. £11.3 million of
shares were purchased and paid for in FY25, with completion of the programme
in June 2025
Operating Highlights
· Significant progress on key showroom projects:
o Opened the new flagship Rolex boutique on Old Bond Street, London, which
is trading ahead of our expectations
o Opened a new 2,000 sq ft Patek Philippe room in Betteridge Greenwich,
Connecticut
o Introduction of Rolex to Watches of Switzerland Plano, Texas and Mayors
Jacksonville, Florida
o Conversion of Mayors Lenox, Atlanta to a Rolex boutique
o Relocation of Mayors Tampa, Florida
o Expansion of Betteridge Vail, Colorado
o New Watches of Switzerland Ross Park, Pittsburgh
o New Mappin & Webb, Edinburgh
o Further six showroom projects in the UK
o Completed the Audemars Piguet AP House, Manchester (opened 6 May 2025)
operating as a joint venture
o Progress made on the Mappin & Webb Luxury Jewellery Boutique,
Manchester, opening in Autumn 2025
· Integration of Roberto Coin Inc. progressing to plan. Positive
feedback from the network of retail partners, with sell-in and sell-out data
encouraging
o Strong revenue growth from the Roberto Coin brand within the Group's US
showrooms, particularly following the installation of elevated displays.
Working on a shop-in-shop concept for retail partners
o Actively negotiating new mono-brand boutiques in the US, with three leases
signed to date
o Plans to increase space in department stores and independent retailers
o Website upgrade in progress
o Launched marketing campaign in May 2025 with Dakota Johnson as global
brand ambassador
· Launch of the upgraded Watches of Switzerland US ecommerce website
in May 2025, with Mayors and Betteridge sites to follow
· Positive consumer response from new product lines introduced
following Watches and Wonders in Geneva
· Hodinkee integration is progressing in line with our expectations
· Accredited as a Great Place To Work® employer in the UK and US,
and Living Wage Employer in the UK
Outlook for FY26
As we enter FY26, we are mindful of the uncertain macroeconomic backdrop,
geopolitical developments, potential US tariff changes, and their potential
impact on consumer confidence. We remain confident in the strong fundamentals
of the luxury watch category and our differentiated business model in the
underdeveloped US market. We also see significant opportunities in luxury
branded jewellery, including our Roberto Coin Inc. growth initiatives.
We are focused on the delivery of our strategy and are encouraged by our
strong pipeline of high-quality projects opening in FY26, across both the UK
and US, including:
· Mappin & Webb Luxury Jewellery boutique, Manchester
· Audemars Piguet AP House, Manchester (opened 6 May 2025)
operating as a joint venture
· Northern Goldsmiths, Newcastle
· New Watches of Switzerland Southdale, Minneapolis
· Relocation of Mayors University Town Center, Florida
· Expansions or relocations of a further six UK showrooms
Guidance:
Our Guidance for the 53 weeks of FY26 (pre-IFRS 16) is based on:
· Current US tariff rate of 10% maintained beyond the 90 day pause
· Currently announced margin changes from brand partners in response
to the 10% tariffs remaining in place. As it stands today, the 10% tariff on
imported goods from Switzerland has led some of our brand partners to put
through mid-single digit price increases in the US, alongside reducing their
authorised distribution network's margin percentage
· Visibility of supply of key brands for calendar year 2025
· No significant changes in tax burden
· Guidance reflects confirmed showroom projects but excludes any
uncommitted capital projects or acquisitions
Constant currency revenue growth 6% - 10%
Adjusted EBIT margin % Flat to -100 bps vs prior year
Capital expenditure £65 - £70 million
The Group is exposed to movements in the £/$ exchange rate when translating
the results of its US operations into Sterling. The actual average exchange
rate for FY25 was $1.28.
The outcome of US tariff developments remains uncertain. We are in regular
dialogue with our brand partners, but it is too early to comment on the
potential sector impact of further changes. We will provide a further update
as to the potential impact on FY26 guidance once the situation becomes
clearer.
FY25 revenue performance by geography and category
H1 FY25 H2 FY25
26 weeks to Reported YoY% Constant currency YoY% 26 weeks to Reported YoY% Constant currency YoY%
27 Oct 2024 27 April 2025
(£ million)
UK and Europe 430 -1% -1% 436 +6% +6%
US 355 +8% +11% 431 +18% +19%
Group Revenue 785 +3% +4% 867 +12% +12%
FY25 FY24 FY25 vs FY24
52 weeks to 52 weeks to Reported Constant currency YoY %
27 April 2025 28 April 2024 YoY %
(£ million)
UK and Europe 866 846 +2% +2%
US 786 692 +14% +16%
Group Revenue 1,652 1,538 +7% +8%
FY25 FY24 FY25 v FY24
52 weeks to 52 weeks to Reported
27 April 2025 28 April 2024 YoY % Constant currency
(£million) YoY%
Luxury watches 1,354 1,345 +1% +2%
Luxury jewellery 211 102 +106% +108%
Services/other 87 91 -4% -3%
Group Revenue 1,652 1,538 +7% +8%
Webcast and conference call
A webcast presentation and conference call for analysts and investors will be
held at 9.00am (UK time) today to announce the FY25 results. To join the call,
please use the following details:
Webcast link: https://brrmedia.news/WOSG_FY_25
(https://brrmedia.news/WOSG_FY_25)
Conference call dial-in: +44 (0) 33 0551 0200
Password: WOSG FY2025
Contacts
The Watches of Switzerland Group
Anders Romberg, CFO +44 (0) 207 317 4600
Caroline Browne, Group Finance and Investor Relations Director +44 (0) 116 281 7420
investor.relations@thewosgroup.com (mailto:investor.relations@thewosgroup.com)
Headland
Lucy Legh / Rob Walker / Scarlett Hateley +44 (0) 203 805 4822
wos@headlandconsultancy.com (mailto:wos@headlandconsultancy.com)
About the Watches of Switzerland Group
The Watches of Switzerland Group is the UK's largest luxury watch retailer,
operating in the UK and US comprising seven prestigious brands; Watches of
Switzerland (UK and US), Mappin & Webb (UK), Goldsmiths (UK), Mayors (US),
Betteridge (US), Analog:Shift (US) and Hodinkee (US), with a complementary
jewellery offering. Since 8 May 2024, the Group has also owned the exclusive
distribution rights for Roberto Coin in the US, Canada, Central America and
the Caribbean.
As at 27 April 2025, the Watches of Switzerland Group had 208 showrooms across
the UK, US and Europe including 94 dedicated mono-brand boutiques in
partnership with Rolex, OMEGA, TAG Heuer, Breitling, TUDOR, Longines, Grand
Seiko, Roberto Coin, BVLGARI and FOPE and has a leading presence in Heathrow
Airport with representation in Terminals 2, 3, 4 and 5 as well as seven retail
websites.
The Watches of Switzerland Group is proud to be the UK's largest retailer for
Rolex, OMEGA, Cartier, TAG Heuer and Breitling watches.
www.thewosgroupplc.com (http://www.thewosgroupplc.com)
CEO Review
FY25 was a year of strong strategic and operational progress for the Group,
which saw the US business continuing its strong momentum, and the UK returning
to growth. Group revenue came in at £1,652 million, which is an increase of
+8% on the prior year, with +16% in the US (including Roberto Coin Inc.) and
+2% in the UK (all in constant currency). From a profitability perspective, we
saw full year Adjusted EBIT improvement to £150 million, which was +12%
(constant currency) year-on-year.
In the US, we experienced good growth, delivering +19% revenue growth in H2
FY25 (constant currency) following a first half that was impacted by the Q1
increase of showroom stock levels of key brands to enhance displays and client
experience. The US now makes up 48% of Group revenue in FY25.
In the UK, we were pleased to see the external environment stabilise in line
with our expectations, supporting revenue growth of +6% in H2 FY25. The UK
performance continues to be driven by a domestic clientele with minimal return
of tourist spending due to lack of VAT free shopping.
The luxury watch category is strong, resilient and offers long-term consistent
growth. In recent years, the impact of the global pandemic has resulted in a
period of unprecedented volatility. We believe the market has now normalised
and secondary market prices have stabilised at above pandemic levels.
A highlight this year was the opening of the flagship Rolex boutique on Old
Bond Street, London. Operating across four floors in circa 7,200 square feet,
this boutique includes the first dedicated Rolex Certified Pre-Owned floor, as
well as three floors dedicated to sales and hospitality, and an after-sales
lounge home to six watchmakers and technicians. The performance of the Rolex
boutique has exceeded expectations.
On 8 May 2024, we announced that the Group had acquired the exclusive
distribution rights for the Roberto Coin brand in the US, Canada, Central
America and the Caribbean, through the acquisition of Roberto Coin's US
associated company, Roberto Coin Inc.. The brand is well-recognised within the
growing US luxury jewellery market. Integration is progressing to plan, and we
see enormous potential growing this iconic brand with existing customers and
using our retail expertise to elevate and expand store presence. We have
received positive feedback from the network of retail partners and
distribution remains intact from the acquisition. FY25 saw good revenue
growth from the Roberto Coin brand within the Group's US showrooms,
particularly following the installation of elevated displays. Looking ahead to
FY26, we are working on a shop-in-shop concept with retail partners and are
actively negotiating new mono-brand boutiques in the US, with three leases
signed to date. The Roberto Coin US website upgrade is in progress. May 2025
saw the launch of a new marketing campaign with Dakota Johnson as the global
brand ambassador.
We are encouraged by the performance of the Rolex Certified Pre-Owned
programme, which launched last year and continues to trade strongly, and the
sustained growth in our overall pre-owned business. Rolex Certified Pre-Owned
is available in all 21 of our US Rolex showrooms and 25 of our UK showrooms.
Window displays are now in place and productivity is expected to increase as a
result.
The luxury branded jewellery market continues to grow, particularly in the US,
and remains a key part of our long-term strategy for growth. FY25 saw
exclusive luxury branded jewellery launches in the UK and there will be
further brands to follow in FY26 with the opening of the Mappin & Webb
Luxury Jewellery boutique, Manchester, which will include a De Beers boutique
- the first one outside of London.
On 3 October 2024, we acquired the editorial, insurance and limited-edition
business from Hodinkee, the pre-eminent global digital editorial content
provider and gateway for luxury watch enthusiasts, further strengthening our
online sector leadership. Integration is progressing in line with our
expectations, and it has been a pleasure working closely with Ben Clymer and
his team. The upgrade for the new Watches of Switzerland US ecommerce website
launched in May 2025, with Mayors, Betteridge and Roberto Coin sites to follow
shortly.
Significant progress has been made on key showroom projects:
· Opened the new flagship Rolex boutique on Old Bond Street,
London, which is trading ahead of our expectations
· Opening of new 2,000 sq ft Patek Philippe room in Betteridge,
Greenwich, Connecticut
· Relocation and introduction of Rolex and Cartier to Watches of
Switzerland, Plano, Texas
· Reintroduction of Rolex to Mayors, Jacksonville, Florida
· Conversion of Mayors, Lenox, Atlanta to a Rolex boutique
· Relocation of Mayors, Tampa, Florida
· Expansion of Betteridge, Vail, Colorado
· New Watches of Switzerland, Ross Park, Pittsburgh
· New Mappin & Webb, Edinburgh
· Expansion of Watches of Switzerland, Oxford Street, London
· Relocations of Goldsmiths, Cheltenham and Milton Keynes
· Conversion and expansion of Watches of Switzerland, Fenchurch
Street, London from Mappin & Webb
· Opened the Audemars Piguet AP House, Manchester (opened 6 May
2025) operating as a joint venture
· Progress made on the Mappin & Webb Luxury Jewellery boutique,
Manchester, opening in Autumn 2025
In April 2025, the Group announced the closure of a number of low
profitability showrooms in the UK. The Group continually assesses its
operations to remain as efficient and productive as possible.
The exit from Europe is now complete, which allows us to focus on higher
returning markets. Three showrooms closed in the year and four sold to brand
partners. The final two boutiques were sold to brand partners in June 2025.
Environmental, Social and Governance
We have continued to progress against our strategic pillars of People, Planet
and Product throughout FY25. Highlights during the year include:
· Great Place to Work-Certified™ in the UK and US
· Met the recommendations of the FTSE Women Leaders Review and
improved our ranking from #10 to #7 in the FTSE 250
· Continued to comply with the UK Real Living Wage recommendations
· Grew sales of pre-owned watches by +39% YoY and expanded our team
of accredited watchmakers and technicians to support circularity, however
missed our overall circularity target for the year
· Transitioned to 100% renewable energy across our Group, through the
purchase of renewable energy certificates, backed by guarantees of origin
· GHG location-based emissions increased by 11% vs prior year due to
business growth and therefore we did not meet our climate target in the year.
We remain determined to reach net-zero by 2050 and are pleased to report an
86% reduction in our market-based operational emissions
· Mappin & Webb named as CSR Jewellery Retailer of the Year for
the second year running in the 2024 Professional Jeweller Awards
· £8.3 million committed by the Group to The Watches of Switzerland
Group Foundation since launch, providing essential support to local charities
focusing on poverty, the advancement of education and relief to those in need
· Headline sponsor for The King's Trust Change a Girl's Life campaign
and biggest fundraiser in the Trust's Future Steps initiative
· Achieved Fair Tax Mark reaccreditation for second year running
Finally, the progress we have made over the year could not have been achieved
without the continued hard work and dedication of our 3,000+ colleagues at
the Watches of Switzerland Group. I would like to personally thank them for
their contribution.
Financial Review
The Group's Consolidated Income Statement is shown below which is presented
including IFRS 16 'Leases' and includes exceptional items.
Income Statement - post-IFRS 16 and exceptional items (£million) 52 weeks ended 52 weeks ended YoY variance
27 April 2025 28 April 2024
Revenue 1,651.5 1,537.9 7%
Operating profit 113.9 120.0 (5)%
Net finance cost (38.0) (27.9) (36)%
Profit before taxation 75.9 92.1 (18)%
Taxation (22.1) (33.0) 33%
Profit for the financial period 53.8 59.1 (9)%
Basic earnings per share 22.8p 25.0p (9)%
Management monitors and assesses the business performance on a pre-IFRS 16 and
exceptional items basis, which is shown below. This aligns to the reporting
used to inform business decisions, investment appraisals, incentive schemes
and debt covenants. A full reconciliation between the pre- and post-IFRS 16
results is shown in the Glossary.
Income Statement - pre-IFRS 16 and exceptional items (£million) 52 weeks ended 52 weeks ended YoY variance
27 April 2025 28 April 2024
Revenue 1,651.5 1,537.9 7%
Net margin(1) 598.6 562.2 6%
Showroom costs (292.7) (289.1) (1)%
4-Wall EBITDA(1) 305.9 273.1 12%
Overheads (106.5) (85.3) (25)%
EBITDA(1) 199.4 187.8 6%
Showroom opening and closing costs (6.9) (8.9) 22%
Share of loss of joint venture and associates (0.2) - -
Adjusted EBITDA 192.3 178.9 8%
Depreciation, amortisation and loss on disposal of fixed assets (42.6) (44.2) 4%
Adjusted EBIT (Segment profit) 149.7 134.7 11%
Net finance costs (13.6) (5.8) (138)%
Adjusted profit before taxation 136.1 128.9 6%
Adjusted earnings per share(1) 41.6p 38.0p 9%
Revenue
Revenue by geography and category
52 weeks ended 27 April 2025 UK and Europe US Total Mix
(£million)
Luxury watches 729.5 624.0 1,353.5 82%
Luxury jewellery 65.0 39.2 104.2 6%
Luxury jewellery wholesale - 110.8 110.8 7%
Eliminations - (4.5) (4.5) -
Services/other 71.4 16.1 87.5 5%
Total revenue 865.9 785.6 1,651.5 100%
52 weeks ended 28 April 2024 UK and Europe US Total Mix
(£million)
Luxury watches 709.4 635.3 1,344.7 87%
Luxury jewellery 62.1 40.3 102.4 7%
Services/other 74.6 16.2 90.8 6%
Total revenue 846.1 691.8 1,537.9 100%
Group revenue was up vs prior year at £1,651.5 million (+8% on a constant
currency basis), with an improved second half performance at +12%.
Group revenue from luxury watches grew by +1% on the prior year. As
anticipated, revenue was impacted by one-off increases in showroom inventory
levels to enhance displays and client experience in Q1 FY25, particularly in
the US, with stronger performance in the second half of the year. Demand for
our key brands, particularly products on Registration of Interest lists,
continues to be strong, with consistent additions and conversions.
We continue to be encouraged by the performance of our pre-owned business with
Rolex Certified Pre-Owned now in 21 agencies in the US and 25 in the UK.
Luxury Watches made up 82% of revenue versus 87% in the prior year, with the
acquisition of Roberto Coin Inc. in the period contributing to a higher luxury
jewellery mix.
Group luxury jewellery revenue, excluding wholesale, increased by 2% on the
prior year, boosted by improved trends in the UK at +5%. US luxury jewellery
sales continue to be impacted by market trends in the bridal category. The
majority of luxury jewellery sold by the Group is retailed under our house
brands of Goldsmiths, Mappin & Webb, Mayors and Betteridge. Our strategy
is to grow our luxury branded jewellery offering, where we partner with other
major luxury jewellery brands. Luxury branded jewellery sales continue to
significantly outperform non-branded jewellery.
On 8 May 2024, the Group signed and completed the acquisition of the entire
share capital of Roberto Coin Inc., the exclusive distributor of Roberto Coin
in the US, Canada, Central America and the Caribbean. Wholesale revenue in the
period was £110.8 million, in line with expectations. The business continues
to work positively with retail partners post-acquisition.
Services/other revenue, consisting of servicing, repairs, insurance services
and the sale of fashion and classic watches and other non-luxury jewellery,
declined by 4%.
Group ecommerce(5) sales declined by 5% compared to the prior year, impacted
by the mix of products sold through this channel and performance of the UK
market. We continue to be the market leader in ecommerce for luxury watches
and jewellery in the UK and are growing our proposition in the US. On 3
October 2024, the Group completed the acquisition of the editorial, insurance
and limited-edition businesses of Hodinkee, the pre-eminent global digital
editorial content provider, to support our objectives to leverage sector
leadership online.
US revenue increased by 16% year-on-year in constant currency (14% reported)
and the US business made up 48% of the Group's revenue in FY25 (FY24: 45%).
Revenue and EBIT growth was largely driven by the Roberto Coin Inc.
acquisition.
During the year, the US opened two showrooms, a Rolex boutique in Lenox,
Atlanta and a Cartier anchored Watches of Switzerland showroom at Ross Park,
Pittsburgh. A further five showroom projects were completed in the year,
including significant projects with Rolex and Patek Philippe.
UK and Europe revenue increased by 2% during the year, showing sequential
improvement to +6% in H2 FY25. Sales in the UK were driven by a domestic
clientele. Tourist sales continue to remain low, particularly on account of
the removal of VAT free shopping for tourists. We have seen a continued
stabilisation of the UK market in both luxury watches and jewellery, following
a period of volatile conditions in the prior financial year.
During the year, we opened one mono-brand boutique in the UK, and a further
multi-brand Mappin & Webb showroom in Edinburgh. 14 UK non-core showrooms
were closed, allowing us to consolidate our portfolio and drive productivity
across our estate. A further ten showrooms will close in Q1 FY26.
In March the new Rolex flagship boutique on Old Bond Street opened and trading
has exceeded expectations since opening. A further five projects were
completed enhancing our existing estate to further elevate the partner brands
we display in those showrooms and advance our client experience. Significant
progress has been made on our exit from Europe. Three showrooms closed in the
period and four sold to brand partners. The remaining two boutiques were sold
to brand partners in early FY26.
Profitability
Profitability as a % of revenue
Income Statement - pre-IFRS 16 and exceptional items (£million) 52 weeks ended 52 weeks ended YoY variance
27 April 2025 28 April 2024
Net margin 36.3% 36.6% (30)bps
Showroom costs 17.7% 18.8% (110)bps
4-Wall EBITDA 18.5% 17.8% 70bps
Adjusted EBITDA 11.6% 11.6% -bps
Adjusted EBIT 9.1% 8.8% 30bps
Net margin as a % of revenue was 36.3% in the year. This was 30bps lower than
the prior year driven by product mix and higher promotional activity, partly
offset by savings on the cost of Interest Free Credit from the reduction in
average term time from removing the four-year offer.
Showroom costs increased by £3.6 million (1%) from the prior year, to £292.7
million. This reflects the opening of new showrooms, and the annualisation of
prior year openings, including acquisitions and annual pay rises to
colleagues. This was partly offset by efficiencies found within digital
marketing investment which continues to maximise traffic and conversion versus
cost.
Overheads increased by £21.2 million (25%) principally due to the acquisition
of Roberto Coin Inc.. Remaining cost increases are due to IT investment to
support future growth, annual pay rises to colleagues, along with the opening
of our new US Support Centre in Florida. This was partly offset by strong cost
control and efficiencies within marketing.
Showroom opening and closing costs include the cost of rent (pre-IFRS 16),
rates and payroll prior to the opening or closing of showrooms, or during
closures when refurbishments are taking place. This cost will vary annually
depending on the scale of expansion in the year.
Exceptional items
Exceptional items are defined by the Group as those which are significant in
magnitude or are linked to events which are expected to be infrequent in
nature. The majority of the items below do not have a cash impact.
Exceptional items (£million) 52 weeks ended 52 weeks ended
27 April 2025 28 April 2024
Rolex Old Bond Street 4.2 2.5
Showroom impairment 44.5 21.2
Showroom closures 6.2 -
European showroom impairment 0.7 8.6
Business acquisitions 2.1 3.3
Reversal of inventory provision created on acquisition - (2.4)
Total exceptional items 57.7 33.2
Of which impacts:
Operating profit 55.5 31.9
Net finance costs 2.2 1.3
Rolex Old Bond Street
A new 7,200 sq ft showroom was built and opened during the year in partnership
with Rolex. This new flagship is our largest Rolex showroom and reflects the
importance of the London market and the special relevance of London to the
history of Rolex. The cost shown here is the IFRS 16 depreciation and interest
costs incurred whilst the showroom was being constructed. They are deemed to
be exceptional in nature given that this unique proposition results in a
project size and complexity significantly outside of a standard build, coupled
with documented project delays outside of the Group's control. Costs shown are
prior to the showroom opening on 14 March 2025.
Showroom impairment
The current macroeconomic environment, high interest rates and inflationary
landscape gave rise to indicators of impairment in the current period.
Consequently, discounted cash flows were performed on all Cash Generating
Units (CGUs) with indicators of impairment. This resulted in a non-cash
impairment charge of £43.6 million being recorded in the period. This is
allocated over the right-of-use assets and the property, plant and equipment
of those showrooms as required by IAS 36 'Impairment of Assets'. A further
provision of £1.6 million relates to associated onerous contracts. A lease
surrender gain of £0.7 million was also recognised in exceptionals, as the
original write-off was presented in exceptionals in the prior year.
Showroom closures
In April 2025 the closure of a number of UK showrooms was announced as the
Group continually assesses its operations to remain as efficient and
productive as possible. The exceptional costs are reflective of asset write
downs, other onerous costs and redundancy costs.
European showroom impairment
As announced during the prior year, the Group's intention has been to
reallocate investment from Europe into the UK and US. During the year the
Group has closed or transferred a further seven showrooms.
Business acquisition costs
Professional and legal expenses on business combinations have been expensed to
the Consolidated Income Statement as an exceptional cost as they are regarded
as non-trading, non-underlying costs and are considered to be material by
nature. Similarly, the costs associated with the integration of Roberto Coin
Inc., and the Hodinkee business have also been expensed as exceptional items.
Adjusted EBIT and operating profit
As a result of the items noted above, Adjusted EBIT was £149.7 million, an
increase of £15.0 million, +11% on the prior year.
After accounting for exceptional costs of £55.5 million and IFRS 16
adjustments of £19.7 million, operating profit as presented on the face of
the Consolidated Income Statement was £113.9 million, a decrease of 5% on the
prior year.
Finance costs
Net finance costs (£million) 52 weeks ended 52 weeks ended
27 April 2025 28 April 2024
Pre-IFRS 16 net finance costs, excluding exceptionals 13.6 5.8
IFRS 16 interest on lease liabilities 22.2 20.8
Total net finance costs, excluding exceptionals 35.8 26.6
Interest payable on borrowings increased in the period, reflecting the new
facilities drawn down to fund the Roberto Coin Inc. acquisition, together with
the annualisation of borrowing to fund the acquisition of 15 showrooms from
Ernest Jones in the prior year. The impact was a net increase in the pre-IFRS
16 interest charge of £7.8 million to £13.6 million. The IFRS 16 interest on
lease liabilities increased by £1.4 million due to recent additions to the
lease portfolio as we continue to invest in showroom portfolio expansion.
Details of a further £2.2 million of exceptional finance costs are given in
note 4 of the Condensed Consolidated Financial Statements.
Taxation
The pre-IFRS 16 Effective Tax Rate (ETR) for the period before exceptional
items was 27.8%. The statutory (post-IFRS 16 and including exceptionals)
effective tax rate was 29.1%.
This is higher than the applicable UK corporation tax rate for the year of
25.0% as a result of higher chargeable taxes on US profits, the impact of
expenses disallowed for corporation tax, and non-recognition of deferred taxes
in Europe. The impact of the US rate differential is lower than the prior year
impact due to the mix of revenue between states. The impact of the
non-recognition of deferred taxes in Europe has also reduced year-on-year due
to the lower activity in these countries following our announced exit from
Europe.
Full detail can be found in note 5 within the Condensed Consolidated Financial
Statements.
Balance Sheet
Balance Sheet (£million)
27 April 2025 28 April 2024
Goodwill and intangibles 304.1 215.7
Investment in joint venture and associates 0.5 -
Property, plant and equipment 192.4 191.4
Right-of-use assets 358.6 381.8
Inventories 447.4 393.3
Trade and other receivables 60.5 24.6
Trade and other payables (259.5) (216.5)
Lease liabilities (454.6) (460.4)
Net (debt)/cash (96.2) 0.7
Other (13.6) (7.6)
Net assets 539.6 523.0
Goodwill and intangibles increased by £88.4 million as a result of the
Roberto Coin Inc. and the Hodinkee business acquisitions in the year which
gave rise to £98.1 million of goodwill and intangibles, offset by £1.1
million amortisation of brands and agency agreement, and a £9.8 million
adverse exchange impact. The most significant intangible asset recognised on
acquisition is £57.2 million for the supply agreement licence with Roberto
Coin S.p.A. which is non-amortising as it extends into perpetuity. A further
£3.6 million of computer software additions were made in the year as part of
ongoing IT developments, offset by amortisation of £2.2 million and disposals
of £0.2 million.
Property, plant and equipment increased by £1.0 million in the year.
Additions of £69.0 million were offset by depreciation of £40.8 million,
impairments of £19.7 million, and loss on disposal and foreign exchange
movements of £7.5 million.
Including software costs, which are disclosed as intangibles, capital
additions (including accruals) were £71.6 million in the year, of which
£68.8 million was expansionary. Expansionary capex relates to new showrooms,
relocations or major refurbishments (defined as costing over £0.25 million).
In the year, the Group opened four new showrooms and refurbished 11 showrooms.
Investment in our portfolio is paramount to our strategy and the Group follows
a disciplined payback policy when making capital investment decisions.
Right-of-use assets decreased by £23.2 million in the year, to £358.6
million. Additions to the lease portfolio along with lease renewals or other
lease changes were £69.5 million. This has been offset by depreciation of
£56.5 million and impairments of £26.8 million. The remaining movement is a
£9.4 million adverse foreign exchange impact.
Lease liabilities decreased by £5.8 million in the year. The portfolio
changes noted above increased the lease liability by £61.6 million. Interest
charged on the lease liability was £24.4 million and there was a £11.2
million favourable foreign exchange impact. Lease payments were £80.6
million, giving a final lease liability balance of £454.6 million.
Inventory levels increased by £54.1 million (14%) compared to the prior year.
£53.9 million of inventory was acquired as part of the Roberto Coin Inc.
acquisition, and the Group increased pre-owned watches and Rolex Certified
Pre-Owned volume by £13.3 million. This has been offset through a reduction
in underlying inventory to maintain stock turn at appropriate levels. The
inventory obsolescence risk remains low for the Group.
Trade and other receivables increased by £35.9 million compared to FY24.
Notable reasons for the increase being: £18.3 million of wholesale trade
receivables under Roberto Coin Inc.; £8.8 million held in escrow in relation
to business combinations (see note 9 of the Condensed Consolidated Financial
Statements); investment into the joint venture; and invoices raised for
Hodinkee advertising revenue at the period end. The balance also represents
prepayments, rebate receivables, rent deposits and other ad hoc receivables
such as property contributions.
Trade and other payables increased by £43.0 million. Notable reasons for the
increase being: £10.9 million of trade payables and £18.2 million of other
payables (including deposits taken and the sales return provision) under
Roberto Coin Inc.; £8.8 million held in escrow; and £7.9 million of deferred
consideration payable in relation to business combinations (see note 9 of the
Condensed Consolidated Financial Statements).
Other includes taxation balances, defined benefit pension and capitalised
finance costs.
Net cash/debt and financing
Net debt on 27 April 2025 was £96.2 million, an increase of £96.9 million
since 28 April 2024. The strong free cash flow of £97.8 million being
utilised for £72.6 million of expansionary capex, £106.9 million relating to
the Roberto Coin Inc. and the Hodinkee business acquisitions and £11.3
million for the purchase of own shares as part of the share buyback programme.
Net debt post-IFRS 16 was £548.5 million. The value comprises the pre-IFRS 16
net debt of £96.2 million and the £454.6 million lease liability, offset by
capitalised transaction costs of £2.3 million. The balance increased by
£90.5 million (from £458.0 million) in the period, principally driven by the
acquisition spend.
The Group's maximum amount available under its committed facility was £368.9
million at 27 April 2025.
Facilities held Expiring Amount
(million)
Multicurrency revolving loan facility - UK SONIA +1.50% to +2.55% May 2028 £275.0
Multicurrency term facility - UK SONIA +1.65% to +2.70% May 2028 $125.0
On 13 December 2024, the Group refinanced and repaid its $115.0 million term
loan facility which was originally taken out to finance the Roberto Coin Inc.
acquisition with a new £150.0 million facility (comprising a £100.0 million
term loan and an incremental £50.0 million revolving loan facility). The
£100.0 million was drawn down on 13 December 2024 as $125.0 million and no
further drawdown on the £100.0 million is permitted. The new facilities run
coterminously with the existing UK bank facility of £225.0 million.
£195.1 million of these facilities were drawn down at 27 April 2025.
Liquidity headroom (defined as unrestricted cash plus undrawn available
facilities) was £253.5 million. Further detail with regards to covenant tests
and liquidity headroom can be found in borrowings note 7 within the Condensed
Consolidated Financial Statements.
Cash Flow
Cash flow (£million) 52 weeks ended 52 weeks ended
27 April 2025 28 April 2024
Adjusted EBITDA 192.3 178.9
Share-based payments 1.8 2.1
Share of loss of joint venture and associates 0.2 -
Working capital (52.2) (20.3)
Pension contributions (0.7) (0.7)
Tax (29.7) (33.5)
Cash generated from operating activities 111.7 126.5
Maintenance capex (2.8) (2.7)
Net interest (11.1) (6.2)
Free cash flow 97.8 117.6
Free cash flow conversion 51% 66%
Expansionary capex (72.6) (78.0)
Acquisitions (106.9) (44.2)
Investment in joint venture and associates (0.7) -
Purchase of own shares for employee incentive schemes - (7.2)
Share buyback (11.3) -
Refinancing costs (1.5) (2.2)
Disposal of European property, plant and equipment 2.7 -
Exceptional items - cash (8.6) (2.5)
Cash flow (101.1) (16.5)
Net proceeds/(repayment) of borrowings 85.7 (5.0)
Net decrease in cash and cash equivalents (15.4) (21.5)
Free cash flow decreased by £19.8 million to £97.8 million in the year to 27
April 2025 and free cash flow conversion was 51% compared to 66% in the prior
year, primarily as a result of a higher working capital outflow in the period.
This related to the timing of trade creditor payments and the change of
payment terms from certain suppliers. Excluding the change in payment terms,
free cash flow conversion would have been 71%.
Expansionary cash capex of £72.6 million was lower than the prior year due to
a decrease in new showroom openings and refurbishments. In the year, the Group
opened four new showrooms and refurbished 11 showrooms.
£11.3 million of shares were purchased and paid for in the period as part of
the share buyback programme. The balance of the £25 million buyback programme
was completed in June 2025.
Exceptional cash items of £8.6 million, includes Rolex Old Bond Street
pre-opening rent, business acquisition and integration costs, and showroom
exit costs as detailed in note 4 to the Condensed Consolidated Financial
Statements.
Return on Capital Employed (ROCE)(1)
52 weeks ended 52 weeks ended
27 April 2025 28 April 2024
ROCE 19.0% 19.5%
FY25 ROCE is 19.0%, a decrease of 50bps in comparison to the prior year.
Adjusted EBIT increased by 11% to £149.7 million, however Average Capital
Employed during this period increased by 14% leading to the reduction.
Capital Allocation
The Group has a clear framework of capital allocation and is focused on
optimising capital deployment for the benefit of all our stakeholders, with a
focus on long-term sustainable growth in the business. It is also important
for the Group to maintain financial and operational flexibility to be able to
react tactically to opportunities, such as strategic acquisitions, at speed.
Our capital allocation framework is as follows:
1. Showroom investments - given the attractive returns from showroom
investments, this is our key focus area to allocate capital to. In FY25 the
Group spent £72.6 million in expansionary capex
2. Strategic acquisitions - this is a key pillar of our growth
strategy. Acquisitions must deliver return on investment in line with our
disciplined financial criteria, within an appropriate timeframe. In FY25 the
Group spent £106.9 million for the acquisitions of Roberto Coin Inc. and the
Hodinkee business
3. Returns to shareholders - in the event of surplus capital above and
beyond the requirements of the business for investment into showrooms or
strategic acquisitions, we would consider returns to shareholders either
through ordinary dividends or share buybacks, with the appropriate mechanism
to be decided at the appropriate time by the Board. On 10 March 2025, the
Group launched a share buyback programme of £25 million. £11.3 million of
shares were purchased and paid for in FY25, with completion of the programme
in June 2025
Showroom Portfolio
As at 27 April 2025, the Group had 208 showrooms. The movement in showroom
numbers is included below:
UK multi-brand UK mono-brand Europe mono-brand boutiques Total UK and Europe US multi-brand US mono-brand Total US Total Group
showrooms boutiques showrooms boutiques
28 April 2024 99 59 9 167 25 31 56 223
Openings 1 1 0 2 1 1 2 4
Acquisitions - - - - - 4 4 4
Closures (11) (3) (7) (21) (1) (1) (2) (23)
27 April 2025 89 57 2 148 25 35 60 208
Footnote references
(1) This is an Alternative Performance Measure and is shown on a pre-IFRS 16
basis. Refer to the Glossary for definition, purpose and reconciliation to
statutory measures where relevant.
(2) Luxury watches are defined as those that have a Recommended Retail Price
greater than £1,000.
(3) Luxury jewellery is defined as those that have a Recommended Retail Price
greater than £500.
(4) Expansionary capex is defined as capital expenditure relating to new
showrooms or offices, relocations or refurbishments greater than £250,000.
(5)Ecommerce sales are sales which are transacted online.
Certain financial data within this announcement has been rounded. Growth rates
are calculated on unrounded numbers.
Principal and emerging risks and uncertainties
The Group is exposed to a number of risks and uncertainties in its business
which could impact its ability to effectively execute its strategy and cause
actual results to differ materially from expected and/or historical results.
The Board has undertaken a robust assessment of the principal and emerging
risks and uncertainties facing the Group, including those that would threaten
its business model, future performance, solvency or liquidity. The risks
presented in the 2024 Annual Report and Accounts, described as follows, remain
unchanged: Business strategy execution and development; Key suppliers and
supply chain; Client experience and market risks; Colleague talent and
capability; Data protection and cyber security; Business interruption;
Regulatory and compliance; Economic and political; Brand and reputational
damage; Financial and treasury; and Climate change. These are detailed on
pages 134 to 139 of the 2024 Annual Report, a copy of which is available on
the Watches of Switzerland Group PLC (the 'Company') website at
www.thewosgroupplc.com.
A full disclosure of the Group's principal risks and emerging risks and
uncertainties, including the factors which mitigate them, will be set out
within the Strategic Report of the 2025 Annual Report and Accounts.
Disclaimer
This announcement has been prepared by Watches of Switzerland Group PLC (the
'Company'). It includes statements that are, or may be deemed to be,
"forward-looking statements". Forward-looking statements are statements based
on the Company's current expectations and assumptions and involve known and
unknown risks and uncertainties that could cause actual results, performance,
or events to differ materially from those expressed or implied in these
statements. These forward-looking statements can be identified by the use of
forward-looking terminology, including the terms "believes", "estimates",
"anticipates", "expects", "intends", "plans", "projects", "goal",
"objectives", "outlook", "probably", "target", "aim", "may", "will", "would",
"could" or "should" or, in each case, their negative or other variations or
comparable terminology. They appear in a number of places throughout this
announcement and the information incorporated by reference into this
announcement and may include statements regarding the intentions, beliefs or
current expectations of the Company, its Directors, or the Company and its
subsidiaries (the 'Group') concerning, amongst other things: (i) future
capital expenditures, expenses, revenues, earnings, synergies, economic
performance, indebtedness, financial condition, dividend policy, losses and
future prospects; (ii) business and management strategies, the expansion and
growth of the Group's business operations; and (iii) the effects of government
regulation and industry changes on the business of the Company or the Group.
By their nature, forward-looking statements involve risks and uncertainties
because they relate to events and depend on circumstances that may or may not
occur in the future and may be beyond the Company's ability to control or
predict. Forward-looking statements are not guarantees of future performance.
The Group's actual results of operations, financial condition, liquidity, and
the development of the industry in which it operates may differ materially
from the impression created by the forward-looking statements contained in
this announcement and/or the information incorporated by reference into this
announcement.
Any forward-looking statements made by or on behalf of the Company or the
Group speak only as of the date they are made and are based upon the knowledge
and information available to the Directors on the date of this announcement,
and are subject to risks relating to future events, other risks, uncertainties
and assumptions relating to the Company's operations and growth strategy, and
a number of factors that could cause actual results and developments to differ
materially from those expressed or implied by the forward-looking statements.
Undue reliance should not be placed on any forward-looking statements and,
except as required by law or regulation, the Company undertakes no obligation
to update these forward-looking statements as a result of new information,
future events, or other information. No statement in this announcement should
be construed as a profit forecast or profit estimate.
Before making any investment decision in relation to the Company you should
specifically consider the factors identified in this document, in addition to
the risk factors that may affect the Company or the Group's operations as
detailed above.
Watches of Switzerland Group PLC
Preliminary results
For the 52 week period ended 27 April 2025
Registered number: 11838443
CONSOLIDATED INCOME STATEMENT FOR THE 52 WEEKS ENDED 27 APRIL 2025
52 week period 52 week period
ended 27 April 2025 ended 28 April 2024
£m £m
Note
Revenue 2, 3 1,651.5 1,537.9
Cost of sales (1,438.3) (1,348.5)
Exceptional cost of sales 4 (2.0) 0.5
GROSS PROFIT 211.2 189.9
Administrative expenses (43.6) (37.5)
Exceptional impairment of assets 4 (46.5) (26.2)
Exceptional other administrative expenses 4 (7.0) (6.2)
Share of loss of joint venture and associates (0.2) -
OPERATING PROFIT 113.9 120.0
Finance costs (38.1) (29.5)
Finance income 2.3 2.9
Exceptional finance costs 4 (2.2) (1.3)
NET FINANCE COST (38.0) (27.9)
Profit before taxation 75.9 92.1
Taxation 5 (22.1) (33.0)
Profit for the financial period 53.8 59.1
EARNINGS PER SHARE
Basic 6 22.8p 25.0p
Diluted 6 22.7p 24.8p
The notes are an integral part of these Condensed Consolidated Financial
Statements.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE 52 WEEKS ENDED 27 APRIL
2025
52 week period 52 week period
ended 27 April 2025 ended 28 April 2024
£m £m
Note
Profit for the financial period 53.8 59.1
Other comprehensive (expense)/income:
ITEMS THAT MAY BE RECLASSIFIED TO PROFIT OR LOSS
Foreign exchange (loss)/gain on translation of foreign operations (15.2) 1.7
Related current tax 1.1 (0.1)
movements
(14.1) 1.6
ITEMS THAT WILL NOT BE RECLASSIFIED TO PROFIT OR LOSS
Actuarial movements on defined benefit pension 0.1 (0.9)
scheme
Related deferred tax - 0.2
movements
0.1 (0.7)
Other comprehensive (expense)/income for the period (14.0) 0.9
Total comprehensive income for the period 39.8 60.0
The notes are an integral part of these Condensed Consolidated Financial
Statements.
CONSOLIDATED BALANCE SHEET AS AT 27 APRIL 2025
27 April 2025 28 April 2024
Note £m £m
ASSETS
NON- CURRENT ASSETS
Goodwill 231.2 199.3
Intangible assets 72.9 16.4
Property, plant and equipment 192.4 191.4
Right-of-use assets 358.6 381.8
Investment in joint venture and associates 0.5 -
Deferred tax assets 4.1 0.4
Post-employment benefit asset 0.5 -
Trade and other receivables 4.5 2.1
864.7 791.4
CURRENT ASSETS
Inventories 447.4 393.3
Current tax asset 8.6 4.5
Trade and other receivables 56.0 22.5
Cash and cash equivalents 7 98.9 115.7
610.9 536.0
Total assets 1,475.6 1,327.4
LIABILITIES
CURRENT LIABILITIES
Trade and other payables (254.9) (215.4)
Current tax liability (0.5) -
Lease liabilities 7 (56.0) (57.0)
Provisions (2.4) (1.9)
(313.8) (274.3)
NON- CURRENT LIABILITIES
Trade and other payables (4.6) (1.1)
Deferred tax liabilities (15.9) (3.4)
Lease liabilities 7 (398.6) (403.4)
Borrowings (192.8) (113.3)
7
Post-employment benefit - (0.2)
obligations
Provisions (10.3) (8.7)
(622.2) (530.1)
Total liabilities (936.0) (804.4)
Net assets 539.6 523.0
EQUITY
Share capital 3.0 3.0
Share premium 147.1 147.1
Merger reserve (2.2) (2.2)
Other reserves (13.3) (23.4)
Retained earnings 414.7 394.1
Foreign exchange reserve (9.7) 4.4
Total equity 539.6 523.0
The notes are an integral part of these Condensed Consolidated Financial
Statements.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY AS AT 27 APRIL 2025
Foreign exchange reserve Total equity attributable to owners
Share capital Share premium Merger reserve Other reserves Retained earnings £m £m
£m £m £m £m £m
Balance at 30 April 2023 3.0 147.1 (2.2) (18.4) 337.0 2.8 469.3
Profit for the financial period - - - - 59.1 - 59.1
Other comprehensive income, net of tax - - - - (0.7) 1.6 0.9
Total comprehensive income - - - - 58.4 1.6 60.0
Purchase of own shares for share schemes - - - (7.2) - - (7.2)
Share-based payment charge - - - - 2.1 - 2.1
Share-based payments exercised - - - 2.2 (2.2) - -
Tax on items credited to equity - - - - (1.1) - (1.1)
Tax on vested shares moved to current tax - - - - (0.1) - (0.1)
Total other transactions - - - (5.0) (1.3) - (6.3)
Balance at 28 April 2024 3.0 147.1 (2.2) (23.4) 394.1 4.4 523.0
Profit for the financial period - - - - 53.8 - 53.8
Other comprehensive income, net of tax - - - - 0.1 (14.1) (14.0)
Total comprehensive income - - - - 53.9 (14.1) 39.8
Purchase of own shares for cancellation - - - (12.1) - - (12.1)
Own shares cancelled - - - 11.3 (11.3) - -
Committed share buyback - - - - (12.9) - (12.9)
Share-based payment charge - - - - 1.8 - 1.8
Share-based payments exercised - - - 10.9 (10.9) - -
Tax on items credited to equity - - - - 0.4 - 0.4
Tax on vested shares moved to current tax - - - - (0.4) - (0.4)
Total other transactions - - - 10.1 (33.3) - (23.2)
Balance at 27 April 2025 3.0 147.1 (2.2) (13.3) 414.7 (9.7) 539.6
CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE 52 WEEKS ENDED 27 APRIL 2025
52 week period 52 week period
ended 27 April 2025 ended 28 April 2024
£m £m
Note
CASH FLOWS FROM OPERATING ACTIVITIES
Profit for the period 53.8 59.1
Adjustments for:
Depreciation of property, plant and equipment 40.8 39.7
Depreciation of right-of-use assets 54.5 54.8
Depreciation of right-of-use assets - exceptional items (note 4) 2.0 1.2
Amortisation of intangible assets 3.3 3.6
Impairment of right-of-use assets - exceptional items (note 4) 26.8 16.4
Impairment of property, plant and equipment - exceptional items (note 4) 19.7 9.8
Loss on disposal of property, plant and equipment 0.2 1.1
Loss on disposal of property, plant and equipment - exceptional items (note 4) 0.6 -
Loss on disposal of intangibles 0.2 -
Gain on lease modifications and disposals (5.5) (0.8)
Share-based payment charge 1.8 2.1
Share of loss of joint venture and associates 0.2 -
Finance income (2.3) (2.9)
Finance costs 38.1 29.5
Finance costs - exceptional items (note 4) 2.2 1.3
Taxation 5 22.1 33.0
Increase in inventory (13.3) (11.3)
Increase in debtors (18.2) (4.4)
Decrease in creditors, provisions and pensions (12.9) (6.7)
Cash generated from operations 214.1 225.5
Pension scheme contributions (0.7) (0.7)
Tax paid (29.7) (33.5)
Total net cash generated from operating activities 183.7 191.3
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of non-current assets:
Property, plant and equipment additions (68.0) (81.6)
Intangible asset additions (3.6) (2.4)
Movement on capital expenditure accrual (3.8) 4.1
Cash outflow from purchase of non-current assets (75.4) (79.9)
Interest received 2.3 3.0
Investment in joint venture and associates (0.7) -
Disposal of European property, plant and equipment 2.7 -
Acquisition of subsidiaries net of cash acquired (106.9) (44.2)
Total net cash outflow from investing activities (178.0) (121.1)
CASH FLOWS FROM FINANCING ACTIVITIES
Purchase of own shares for share schemes - (7.2)
Purchase of own shares for cancellation (11.3) -
Proceeds/(repayment) of term loan 7 99.5 (120.0)
Net movement on multicurrency revolving loan facility 7 (13.8) 115.0
Costs directly attributable to raising new loan facility 7 (1.5) (2.2)
Payment of capital element of leases (56.2) (46.0)
Payment of interest element of (24.4) (22.1)
leases
Interest paid (13.4) (9.2)
Net cash outflow from financing activities (21.1) (91.7)
Net decrease in cash and cash equivalents (15.4) (21.5)
Cash and cash equivalents at the beginning of the period 115.7 136.4
Exchange (losses)/gains on cash and cash equivalents (1.4) 0.8
Cash and cash equivalents at the end of period 98.9 115.7
Comprised of:
Cash at bank and in hand 80.4 93.8
Cash in transit 18.5 21.9
Cash and cash equivalents at end of period 98.9 115.7
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. ACCOUNTING POLICIES
GENERAL INFORMATION
The Condensed Consolidated Financial Statements, which comprise the
Consolidated Income Statement, Consolidated Statement of Comprehensive Income,
Consolidated Balance Sheet, Consolidated Statement of Changes in Equity,
Consolidated Statement of Cash Flows and related notes, do not constitute full
accounts within the meaning of s435 (1) and (2) of the Companies Act 2006. The
auditor has reported on the Group's statutory accounts for the 52 week period
ended 27 April 2025 and 52 week period ended 28 April 2024, which do not
contain any statement under s498 (2) or (3) of the Companies Act 2006 and were
unqualified. The statutory accounts for the 52 week period ended 28 April 2024
have been delivered to the Registrar of Companies and the statutory accounts
for the 52 week period ended 27 April 2025 will be filed with the Registrar in
due course.
This announcement was approved by the Board of Directors on 2 July 2025.
BASIS OF PREPARATION
Whilst the financial information has been prepared in accordance with the
recognition and measurement criteria of UK adopted international accounting
standards in conformity with the requirements of the Companies Act 2006, this
announcement does not itself contain all the disclosures required to comply
with UK adopted international accounting standards. The accounting policies
adopted in the preparation of the Condensed Consolidated Financial Statements
are the same as those set out in the Group's Annual Financial Statements for
the 52 weeks ended 27 April 2025 and 52 weeks ended 28 April 2024. The Group
has not adopted early any other standard, interpretation or amendment that has
been issued but is not effective.
The Condensed Consolidated Financial Statements have been prepared under the
historical cost convention except for pension assets which are measured at
fair value.
GOING CONCERN
The Directors consider that the Group has, at the time of approving the Group
Condensed Consolidated Financial Statements, adequate resources to remain in
operation for the foreseeable future and have therefore continued to adopt the
going concern basis in preparing the consolidated information.
On 13 December 2024, the Group refinanced and repaid its $115.0 million term
loan facility which was originally taken out to finance the Roberto Coin Inc.
acquisition with a new £150.0 million facility, being made up of a £100.0
million Term Loan and £50.0 million multicurrency revolving credit facility.
The £100.0 million was drawn down on 13 December 2024 as USD $125.0 million
and no further drawdown on the £100.0 million is permitted. The new
facilities run coterminously with the existing UK bank facility of £225.0
million. The going concern assessment has been carried out taking into account
all facilities now in place.
The key covenant tests attached to all Group facilities are a measure of net
debt to EBITDA, and the Fixed Charge Cover Ratio (FCCR) at each April and
October. The facility covenants are on a pre-IFRS 16 basis and exclude
share-based payment costs. Net debt to EBITDA is defined as the ratio of total
net debt at the reporting date to the last 12 month Adjusted EBITDA. This
ratio must not exceed 3. The FCCR is the ratio of Adjusted EBITDA plus rent to
the total finance charge and rent for the 12 months to the reporting date.
This ratio must exceed 1.6. At 27 April 2025 the Group comfortably satisfied
the covenant tests with net debt to EBITDA being less than 3 and the FCCR
exceeding 1.6.
At the balance sheet date, the Group had a total of £368.9 million in
available committed facilities, of which £195.1 million was drawn down. Net
debt at this date was £96.2 million. Liquidity headroom (defined as
unrestricted cash plus undrawn available facilities) was £253.5 million. All
bank facilities run coterminously and are due to expire in May 2028. Further
detail can be found in borrowings note 7 within the Condensed Consolidated
Financial Statements.
In assessing whether the going concern basis of accounting is appropriate, the
Directors have reviewed various trading scenarios for the period to 31 October
2026 from the date of this report. These included:
- The FY26 base case forecast which aligns to Guidance given in this
announcement, plus a further six-month period which assumes no additional
sales or profit uplift. These included the following key assumptions:
- Revenue forecast supported by expected luxury watch supply
- Impact of US tariffs included where price changes have already been
announced
- Impact of announced UK showroom closures
- Increased cost base in line with macroeconomic environment, employment
taxes and environmental targets
Under the base case forecast, the Group has significant liquidity and complies
with all covenant tests to 31 October 2026. The forecast reflects current
visibility of supply from key brands and confirmed showroom refurbishments,
openings and closures, and excludes uncommitted capital projects and
acquisitions which would only occur if expected to be incremental to the
business.
- Severe but plausible scenarios of:
- 15% reduction in sales against the base case forecast as a result of
consumer confidence, macroeconomic and governmental factors. This scenario did
not include cost mitigations which are given below
- The realisation of material risks detailed within the Principal Risks and
Uncertainties (including potential data breaches and non-compliance with laws
and regulations), and also environmental risks
Under these scenarios the net debt to EBITDA and the FCCR covenants would be
complied with.
- Reverse stress-testing of cash flows during the going concern period was
performed. This determined what level of reduced EBITDA and worst-case cash
flows would result in a breach of the liquidity or covenant tests. The
likelihood of this level of reduced EBITDA is considered remote taking into
account liquidity and covenant headroom, as well as mitigating actions within
management's control (as noted below) and that this would represent a
significant reduction in sales and margin from prior financial years
- Should trading be worse than the outlined severe but plausible scenarios,
the Group has the following mitigating actions within management's control:
- Reduction of marketing spend
- Reduction in the level of inventory holding and purchases
- Restructuring of the business with headcount and showroom operations
savings
- Redundancies and pay freezes
- Reducing the level of planned capex
The Directors also considered whether there were any events or conditions
occurring just outside the going concern period that should be considered in
their assessment, including whether the going concern period needed to be
extended.
As a result of the above analysis, including potential severe but plausible
scenarios and the reverse stress test, the Board believes that the Group and
Company is able to adequately manage its financing and principal risks, and
that the Group and Company will be able to operate within the level of its
facilities and meet the required covenants for the period to 31 October 2026.
For this reason, the Board considers it appropriate for the Group and Company
to adopt the going concern basis in preparing the Condensed Consolidated
Financial Statements.
CLIMATE CHANGE
In preparing the Condensed Consolidated Financial Statements management has
considered the impact of climate change, particularly in the context of the
disclosures included in the Strategic Report. These considerations did not
have a material impact on the Condensed Consolidated Financial Statements,
including the Group's going concern assessment to 31 October 2026 and the
viability of the Group over the next three years.
EXCEPTIONAL ITEMS
The Group presents as exceptional items on the face of the Consolidated Income
Statement those items of income and expense which, because of their size,
nature or the expected infrequency of the events giving rise to them, merit
separate presentation to provide a better understanding of the elements of
financial performance in the financial period, so as to assess trends in
financial performance. Further details on exceptional items are given within
note 4.
ALTERNATIVE PERFORMANCE MEASURES (APMS)
The Group has identified certain measures that it believes will assist the
understanding of the performance of the business. These APMs are not defined
or specified under the requirements of IFRS.
The Group believes that these APMs, which are not considered to be a
substitute for, or superior to, IFRS measures, provide stakeholders with
additional useful information on the underlying trends, performance and
position of the Group and are consistent with how business performance is
measured internally. The APMs are not defined by IFRS and therefore may not be
directly comparable with other companies' APMs.
The key APMs that the Group uses include: Net margin, Adjusted EBITDA,
Adjusted EBIT and Adjusted Earnings Per Share. These APMs are set out in the
Glossary, including explanations of how they are calculated and how they are
reconciled to a statutory measure where relevant.
The Group makes certain adjustments to the statutory profit measures in order
to derive many of these APMs. The Group's policy is to exclude items that are
considered non-underlying and exceptional due to their size, nature or
incidence, and are not considered to be part of the normal operating costs of
the Group. Treatment as an adjusting item provides stakeholders with
additional useful information to assess the year-on-year trading performance
of the Group but should not be considered in isolation of statutory measures.
NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS
The following amendment was adopted early by the Group in the prior year:
- Classification of Liabilities as Current or Non-current and Non-current
Liabilities with Covenants - Amendments to IAS 1
This had no material impact on the Group.
Significant accounting estimates, assumptions and judgements
The preparation of consolidated financial information requires the Group to
make estimates and assumptions that affect the application of policies and
reported amounts. Estimates and judgements are continually evaluated and are
based on historical experience and other factors, including expectations of
future events that are reasonable under the circumstances. Actual results may
differ from these estimates.
Significant estimates and assumptions
Estimates and underlying assumptions are reviewed by management on an ongoing
basis, with revisions recognised in the period in which the estimates are
revised and in any future period affected.
The areas involving significant risk resulting in a material adjustment to the
carrying amounts of assets and liabilities within the next financial period
are as follows:
Net realisable value of inventories
Inventories are stated at the lower of cost and net realisable value, on a
weighted average cost basis. Provisions are recognised where the net
realisable value is assessed to be lower than cost. The calculation of this
provision requires estimation of the eventual sales price and sell-through of
goods to customers in the future. The inventory provision held at the year-end
was £5.8 million (2024: £6.4 million). A 20% reduction in the sell-through
of slow moving stock would impact the net realisable value by c.£4.0 million.
Impairment of property, plant and equipment and right-of-use assets
Property, plant and equipment and right-of-use assets are reviewed for
impairment if events or changes in circumstances indicate that the carrying
amount may not be recoverable. For the impairment test, the value-in-use
method requires the Group to determine appropriate assumptions (which are
sources of estimation uncertainty) in relation to the cash flow projections
over the strategic plan period, the long-term growth rate to be applied beyond
this period and the risk-adjusted pre-tax discount rate used to discount those
cash flows. The key assumptions relate to sales growth rates and discount
rates used to discount the cash flows. Climate risk and near-term
environmental actions that the Group is taking have been considered in future
cash flows used in the impairment review. This includes unavoidable future
costs such as price increases, together with the cost of mitigating climate
risks, and consideration of quantified climate related risks on future cash
flows. Showroom related property, plant and equipment and right-of-use assets
are tested for impairment at a showroom by showroom level, including an
allocation of overheads related to showroom operations.
Significant judgements
The following are the critical judgements, apart from those involving
estimations, that the Directors have made in the process of applying the
Group's accounting policies and that have the most significant effect on the
amounts recognised in the Condensed Consolidated Financial Statements:
Classification of exceptional items and presentation of non-GAAP measures
The Directors exercise their judgement in the classification of certain items
as exceptional and outside the Group's underlying results. The determination
of whether an item should be separately disclosed as an exceptional item,
non-underlying or non-trading requires judgement on its size, nature or
expected infrequency, as well as whether it provides clarity on the Group's
underlying trading performance. In exercising this judgement, the Directors
take appropriate regard of IAS 1 'Presentation of financial statements' as
well as guidance from the Financial Reporting Council and the European
Securities Market Authority on the reporting of exceptional items and APMs.
The overall goal of the Directors is to present the Group's underlying
performance without distortion from one-off or non-trading events regardless
of whether they are favourable or unfavourable to the underlying result.
Further details on exceptional items are provided in note 4.
Lease term (IFRS 16)
IFRS 16 defines the lease term as the non-cancellable period of a lease
together with the options to extend or terminate a lease, if the lessee were
reasonably certain to exercise that option.
Where a lease includes the option for the Group to terminate the lease before
the term end, the Group makes a judgement as to whether it is reasonably
certain that the option will or will not be taken.
On entering into a lease, the Group assesses how reasonably certain it is to
exercise these options. The default position is that the Group will determine
that the lease term is to the end of the lease (i.e. will not include
break-clauses or options to extend) unless there is clear evidence to the
contrary.
The lease term of each lease is reassessed if there is specific evidence of a
change in circumstance such as:
- A decision has been made by the business to exercise a break or option
- The trading performance significantly changes
- Planned future capital expenditure suggests that the option to extend will
be taken
Discount rates (IFRS 16)
The discount rate used to calculate the lease liability is the rate implicit
in the lease, if it can be readily determined, or the lessee's incremental
borrowing rate if not. Management uses the rate implicit in the lease in
relation to the Group's 'Other' leases and the lessee's incremental borrowing
rate for all property leases.
Incremental borrowing rates are determined on entering a lease and depend on
the term, country, currency and start date of the lease. The incremental
borrowing rate used is calculated based on a series of inputs including:
- The risk-free rate based on country-specific swap markets
- A credit risk adjustment based on country-specific corporate indices; and
- A Group-specific adjustment to reflect the Group's specific borrowing
conditions
As a result, reflecting the breadth of the Group's lease portfolio, judgements
on the lease terms and the international spread of the portfolio, there are a
large number of discount rates applied to the leases within the range of 2.1%
to 7.7%.
2. SEGMENT REPORTING
The key Group performance measures are Adjusted Earnings Before Interest, Tax,
Depreciation and Amortisation (Adjusted EBITDA) and Adjusted Earnings Before
Interest and Tax (Adjusted EBIT), both shown pre-exceptional items, as
detailed below. The segment profit/loss is disclosed on a pre-IFRS 16 basis
reflecting how results are reported to the Chief Operating Decision Makers
(CODMs) and how they are measured for the purposes of covenant testing. Both
Adjusted EBITDA and Adjusted EBIT are APMs and these measures provide
stakeholders with additional useful information to assess the year-on-year
trading performance of the Group but should not be considered in isolation of
statutory measures.
Adjusted EBITDA represents profit for the period before finance costs, finance
income, taxation, depreciation, amortisation and exceptional items presented
in the Group's Consolidated Income Statement (consisting of exceptional cost
of sales, exceptional administrative expenses and exceptional finance costs)
on a pre-IFRS 16 basis. UK and Europe operating segments are aggregated into
one reporting segment, which is reflective of the management structure in
place and meets the aggregation criteria of IFRS 8.
Wholesale revenue is reported separately to the CODM and the results are
aggregated into the US reporting segment. This is reflective of the management
structure in place. As such, following the acquisition of Roberto Coin Inc. in
the period, wholesale revenue has been reported separately. Roberto Coin Inc.
forms part of the US segment below and further detail of revenue, profit
before tax and assets held has been disclosed in note 9 to these accounts.
52 week period ended 27 April 2025
UK and Europe US Corporate Total
£m £m £m £m
Retail revenue 865.9 679.3 - 1,545.2
Wholesale revenue - 110.8 - 110.8
Eliminations - (4.5) - (4.5)
Revenue from external customers 865.9 785.6 - 1,651.5
Cost of sales (553.9) (499.0) - (1,052.9)
Net margin 312.0 286.6 - 598.6
Less:
Showroom costs (170.3) (122.4) - (292.7)
Overheads (44.0) (58.6) (3.9) (106.5)
Showroom opening and closing costs (1.6) (5.3) - (6.9)
Share of loss of joint venture and associates (0.2) - - (0.2)
Adjusted EBITDA 95.9 100.3 (3.9) 192.3
Depreciation, amortisation, impairment and loss on disposal of assets (25.9) (15.2) (1.5) (42.6)
Segment profit/(loss)* 70.0 85.1 (5.4) 149.7
Impact of IFRS 16 (excluding interest on leases) 19.7
Net finance costs (35.8)
Exceptional cost of sales (note 4) (2.0)
Exceptional impairment of assets (note 4) (46.5)
Exceptional other administrative expenses (note 4) (7.0)
Exceptional finance costs (note 4) (2.2)
Profit before taxation for the financial period 75.9
* Segment profit/(loss) is defined as being Earnings Before Interest, Tax,
exceptional items and IFRS 16 adjustments (Adjusted EBIT).
52 week period ended 28 April 2024
UK and Europe US Corporate Total
£m £m £m £m
Revenue from external customers 846.1 691.8 - 1,537.9
Cost of sales (538.8) (436.9) - (975.7)
Net margin 307.3 254.9 - 562.2
Less:
Showroom costs (162.6) (126.5) - (289.1)
Overheads (50.2) (32.8) (2.3) (85.3)
Showroom opening and closing costs (5.6) (3.3) - (8.9)
Adjusted EBITDA 88.9 92.3 (2.3) 178.9
Depreciation, amortisation, impairment and loss on disposal of assets (27.6) (15.2) (1.4) (44.2)
Segment profit/(loss)* 61.3 77.1 (3.7) 134.7
Impact of IFRS 16 (excluding interest on leases) 17.2
Net finance costs (26.6)
Exceptional cost of sales (note 4) 0.5
Exceptional impairment of assets (note 4) (26.2)
Exceptional other administrative expenses (note 4) (6.2)
Exceptional finance costs (note 4) (1.3)
Profit before taxation for the financial period 92.1
Entity-wide revenue disclosures
52 week period 52 week period
ended 27 April 2025 ended 28 April 2024
£m £m
UK AND EUROPE
Luxury watches 729.5 709.4
Luxury jewellery 65.0 62.1
Services/other 71.4 74.6
Total 865.9 846.1
US
Luxury watches 624.0 635.3
Luxury jewellery 39.2 40.3
Luxury jewellery wholesale 110.8 -
Eliminations (4.5) -
Services/other 16.1 16.2
Total 785.6 691.8
GROUP
Luxury watches 1,353.5 1,344.7
Luxury jewellery 104.2 102.4
Luxury jewellery wholesale 110.8 -
Eliminations (4.5) -
Services/other 87.5 90.8
Total 1,651.5 1,537.9
'Services/other' consists of the sale of fashion and classic watches and
jewellery, the sale of gifts, servicing, repairs and product insurance.
Information regarding geographical areas, including revenue from external
customers, is disclosed above.
No single customer accounted for more than 10% of revenue in any of the
financial periods noted above.
Entity-wide statutory non-current asset disclosures
27 April 2025 28 April 2024
£m £m
UK AND EUROPE
Goodwill 137.6 137.6
Intangible assets 5.5 5.1
Property, plant and equipment 100.7 115.7
Right-of-use assets 202.4 252.3
Investment in joint venture and associates 0.5 -
Total 446.7 510.7
US
Goodwill 93.6 61.7
Intangible assets 67.4 11.3
Property, plant and equipment 81.9 65.2
Right-of-use assets 151.2 124.3
Total 394.1 262.5
CORPORATE
Property, plant and equipment 9.8 10.5
Right-of-use assets 5.0 5.2
Total 14.8 15.7
GROUP
Goodwill 231.2 199.3
Intangible assets 72.9 16.4
Property, plant and equipment 192.4 191.4
Right-of-use assets 358.6 381.8
Investment in joint venture and associates 0.5 -
Total 855.6 788.9
3. REVENUE
The Group's disaggregated revenue recognised under contracts with customers
relates to the following categories and operating segments:
52 week period ended 27 April 2025
Sale of goods - wholesale Rendering of services*
Sale of goods - retail and online £m Eliminations £m Total
£m £m £m
UK and Europe 839.4 - - 26.5 865.9
US 666.3 110.8 (4.5) 13.0 785.6
Total 1,505.7 110.8 (4.5) 39.5 1,651.5
52 week period ended 28 April 2024
Rendering of
Sale of goods services Total
£m £m £m
UK and Europe 810.6 35.5 846.1
US 678.8 13.0 691.8
Total 1,489.4 48.5 1,537.9
* The decrease in UK and Europe rendering of service revenue was due to the
prior period including the gross amounts collected from the sale of insurance
policies, compared to the disclosure for the 52-week period ended 27 April
2025 showing the net commission earned. The total revenue reported in the
prior period was correct, and as the disclosure change is not material the
prior year balances have not been restated.
4. EXCEPTIONAL ITEMS
Exceptional items are those that in the judgement of the Directors need to be
separately disclosed by virtue of their size, nature or incidence, in order to
draw the attention of the reader and to show the underlying business
performance of the Group. Such items are included within the Income Statement
caption to which they relate and are separately disclosed on the face of the
Consolidated Income Statement.
52 week period 52 week period
ended 27 April 2025 ended 28 April 2024
£m £m
EXCEPTIONAL COST OF SALES
Acquisition costs - (0.7)
Rolex Old Bond Street (IFRS 16 depreciation)(i) (2.0) (1.2)
Reversal of inventory provision created on acquisition - 2.4
Total exceptional cost of sales (2.0) 0.5
EXCEPTIONAL ADMINISTRATIVE COSTS
Showroom impairment(ii)
Impairment of right-of-use assets (24.6) (13.0)
Impairment of property, plant and equipment (19.0) (7.2)
Other onerous contracts (1.6) (1.0)
Lease surrender gain 0.7 -
Showroom closures(iii)
Impairment of right-of-use assets (2.2) -
Disposal of property, plant and equipment (0.6) -
Other onerous provisions (1.8) -
Redundancy costs (1.6) -
European showroom impairment(iv)
Impairment of right-of-use assets - (3.4)
Impairment of property, plant and equipment (0.7) (2.6)
Other costs - (2.6)
Business acquisitions(v)
Professional and legal expenses on actual and prospective business (0.9) (2.6)
acquisitions
Integration costs of business acquisitions (1.2) -
Total exceptional administrative costs (53.5) (32.4)
EXCEPTIONAL FINANCE COSTS
Rolex Old Bond Street (IFRS 16 interest)(i) (2.2) (1.3)
Total exceptional finance costs (2.2) (1.3)
Total exceptional items (57.7) (33.2)
(i) Rolex Old Bond Street: A new 7,200 sq ft showroom was built and opened
during the year in partnership with Rolex. This new flagship is our largest
Rolex showroom and reflects the importance of the London market and the
special relevance of London to the history of Rolex. The cost shown here is
the IFRS 16 depreciation and interest costs incurred whilst the showroom was
being constructed. They are deemed to be exceptional in nature given that this
unique proposition results in a project size and complexity significantly
outside of a standard build, coupled with documented project delays outside of
the Group's control. Costs shown are prior to the showroom opening on 14 March
2025.
(ii) Showroom impairment: The current macroeconomic environment, high interest
rates and inflationary landscape gave rise to indicators of impairment in the
current period. Consequently, discounted cash flows were performed on all Cash
Generating Units (CGUs) with indicators of impairment. This resulted in a
non-cash impairment charge of £43.6 million being recorded in the period.
This is allocated over the right-of-use assets and the property, plant and
equipment of those showrooms as required by IAS 36 'Impairment of Assets'. A
further provision of £1.6 million relates to associated onerous contracts. A
lease surrender gain of £0.7 million was also recognised in exceptionals, as
the original impairment was presented in exceptionals in the prior year.
(iii) Showroom closured: In April 2025 the closure of a number of showrooms
was announced as the Group continually assesses its operations to remain as
efficient and productive as possible. The exceptional costs are reflective of
asset write downs, other onerous provisions and redundancy costs.
(iv) European showroom impairment: As announced during the prior year, the
Group's intention has been to reallocate investment from Europe into the UK
and US. During the year the Group has closed or transferred a further seven
showrooms.
(v) Business acquisitions: Professional and legal expenses on business
combinations have been expensed to the Consolidated Income Statement as an
exceptional cost as they are regarded as non-trading, non-underlying costs and
are considered to be material by nature. Similarly, the costs associated with
the integration of Roberto Coin Inc., and the Hodinkee business, have also
been expensed as exceptional items.
The total cash outflow in FY25 as a result of the above was £8.6 million,
being (i) £3.3 million + (ii) £1.6 million + (iii) £1.2 million + (iv)
£0.8 million + (v) £1.7 million.
All of these items are considered exceptional as they are linked to unique
non-recurring events and do not form part of the underlying trading of the
Group.
5. TA X ATION
Tax charge for the period
The tax charge for the period is shown below. Tax is made up of current and
deferred tax. Current tax is the amount payable on the taxable income in the
period and any adjustments to tax payable in previous periods.
52 week period 52 week period
ended 27 April 2025 ended 28 April 2024
£m £m
CURRENT TAX:
Current UK tax on profits for the period 9.5 8.7
Current US tax on profits for the period 16.5 16.9
Adjustments in respect of prior periods 1.0 1.2
Total current tax 27.0 26.8
DEFERRED TAX:
Origination and reversal of temporary differences (3.8) 5.2
Impact of change in tax rate - 0.1
Adjustments in respect of prior periods (1.1) 0.9
Total deferred tax (4.9) 6.2
Tax expense reported in the Consolidated Income Statement 22.1 33.0
Factors affecting the tax charge in the period
The tax rate for the current period was higher than the standard rate of
corporation tax in the UK due to the following factors:
52 week period 52 week period
ended 27 April 2025 ended 28 April 2024
£m £m
Profit before taxation 75.9 92.1
Notional taxation at standard UK corporation tax rate of 25.0% (2024: 25.0%) 19.0 23.0
Non-deductible expenses - recurring 2.0 2.5
Non-deductible expenses - exceptional items 0.2 1.9
Overseas tax differentials 0.8 1.9
Deferred tax not recognised - European subsidiaries 0.2 1.5
Adjustments in respect of prior periods (0.1) 2.1
Adjustments due to deferred tax rate change - 0.1
Tax expense reported in the Consolidated Income Statement 22.1 33.0
6. EARNINGS PER SHARE (EPS)
52 week period 52 week period
ended ended
27 April 2025 28 April 2024
BASIC
EPS 22.8p 25.0p
EPS adjusted for exceptional items 40.8p 36.8p
EPS adjusted for exceptional items and pre-IFRS 16 41.6p 38.0p
DILUTED
EPS 22.7p 24.8p
EPS adjusted for exceptional items 40.8p 36.6p
EPS adjusted for exceptional items and pre-IFRS 16 41.5p 37.7p
Basic EPS is based on the profit for the year attributable to the equity
holders of the Parent Company divided by the weighted average number of
shares.
Diluted EPS is calculated by adjusting the weighted average number of shares
used for the calculation of basic EPS as increased by the dilutive effect of
potential ordinary shares.
The following table reflects the profit and share data used in the basic and
diluted EPS calculations:
52 week period 52 week period
ended 27 April 2025 ended 28 April 2024
£m £m
Profit after tax attributable to equity holders of the Parent Company 53.8 59.1
ADJUST FOR EXCEPTIONAL ITEMS:
Exceptional items (note 4) 57.7 33.2
Tax on exceptional items (15.0) (5.2)
Profit adjusted for exceptional items 96.5 87.1
Pre-exceptional IFRS 16 adjustments, net of tax 1.8 2.8
Profit adjusted for exceptional items and IFRS 16 98.3 89.9
The following table reflects the share data used in the basic and diluted EPS
calculations:
52 week period 52 week period
ended 27 April 2025 ended 28 April 2024
WEIGHTED AVERAGE NUMBER OF SHARES: '000 '000
Weighted average number of ordinary shares in issue 236,518 236,753
Weighted average shares for basic EPS 236,518 236,753
Weighted average dilutive potential shares 224 1,446
Weighted average shares for diluted EPS 236,742 238,199
The weighted average number of shares takes into account the weighted average
effect of changes in own shares during the period. Following the year-end, the
committed £25.0 million share buyback programme was completed with the
payment and cancellation of 3,465,947 shares for a cash consideration of
£13.7 million. Following the cancellation there are 233,301,622 ordinary
shares in issue.
7. BORROWINGS
27 April 2025 28 April 2024
£m £m
NON-CURRENT
Term loan (93.9) -
Multicurrency revolving loan facility (101.2) (115.0)
Associated capitalised transaction costs 2.3 1.7
Total borrowings (192.8) (113.3)
Analysis of net debt
29 April 2024 Cash flow Non-cash changes1 Foreign exchange 27 April 2025
£m £m £m £m £m
Cash and cash equivalents 115.7 (15.4) - (1.4) 98.9
Term loan - (99.5) - 5.6 (93.9)
Multicurrency revolving loan facility (115.0) 13.8 - - (101.2)
Net cash/(debt) excluding capitalised transaction costs (pre-IFRS 16) 0.7 (101.1) - 4.2 (96.2)
Capitalised transaction costs 1.7 1.5 (0.9) - 2.3
Net cash/(debt) (pre-IFRS 16) 2.4 (99.6) (0.9) 4.2 (93.9)
Lease liabilities (460.4) 80.6 (86.0) 11.2 (454.6)
Total net debt (458.0) (19.0) (86.9) 15.4 (548.5)
I Non-cash charges are principally a release of capitalised finance costs and
lease liability interest charges, additions and revisions.
On 13 December 2024, the Group refinanced and repaid its $115.0 million term
loan facility which was originally taken out to finance the Roberto Coin Inc.
acquisition with a new £150.0 million facility, being made up of a £100.0
million term loan and £50.0 million multicurrency revolving credit facility.
The £100.0 million was drawn down on 13 December 2024 as USD $125.0 million
and no further drawdown on the £100.0 million is permitted. The new
facilities run coterminously with the existing UK bank facility of £225.0
million.
The key covenant tests attached to all Group facilities are a measure of net
debt to EBITDA, and the Fixed Charge Cover Ratio (FCCR) at each April and
October. The facility covenants are on a pre-IFRS 16 basis and exclude
share-based payment costs. Net debt to EBITDA is defined as the ratio of total
net debt at the reporting date to the last 12 month Adjusted EBITDA. This
ratio must not exceed 3. The FCCR is the ratio of Adjusted EBITDA plus rent to
the total finance charge and rent for the 12 months to the reporting date. The
covenant tests at October 2024 and April 2025 were comfortably met.
8. FINANCIAL INSTRUMENTS
Categories
27 April 2025 28 April 2024
£m £m
FINANCIAL ASSETS - HELD AT AMORTISED COST
Trade and other receivables* 51.4 17.4
Cash and cash equivalents 98.9 115.7
Total financial assets 150.3 133.1
FINANCIAL LIABILITIES - HELD AT AMORTISED COST
Interest-bearing loans and borrowings:
Term loan (net of capitalised transaction costs) (93.2) -
Multicurrency revolving loan facility (net of capitalised transaction costs) (99.6) (113.3)
Multicurrency revolving loan facility interest payable - (1.4)
Trade and other payables** (235.6) (188.4)
(428.4) (303.1)
Lease liability (IFRS 16) (454.6) (460.4)
Total financial liabilities (883.0) (763.5)
* Excludes prepayments of £9.1 million (2024: £7.2 million) that do not
meet the definition of a financial instrument.
** Trade payables exclude customer deposits of £4.3 million (2024: £6.0
million) and deferred income of £19.6 million (2024: £20.7 million) that do
not meet the definition of a financial instrument.
Fair values
At 27 April 2025, the fair values of each category of the Group's financial
instruments are materially the same as their carrying values in the Group's
Balance Sheet based on either their short maturity or, in respect of long-term
borrowings, interest being incurred at a floating rate.
9. BUSINESS COMBINATIONS
Roberto Coin Inc.
On 8 May 2024, the Group signed and completed the acquisition of the entire
share capital of Roberto Coin Inc., an associate company of Roberto Coin
S.p.A. from Roberto Coin S.p.A., Peter Webster, Co-Founder and President of
Roberto Coin Inc., and Pilar Coin. The acquisition completed for a total cash
consideration of £106.2 million, of which £7.9 million was deferred for one
year and contingent on the future profitability of the acquired business. This
has been paid in full after the year-end. A final net working capital true up
payment of £2.1 million was paid after the 27 April 2025 year-end date.
Luxury branded jewellery is a core pillar of the Group's growth strategy and
the acquisition will significantly enhance our strategic positioning in the
luxury branded jewellery market on a per capital basis.
The business contributed revenue of £111.9 million and profit before tax of
£23.5 million from the 8 May 2024 acquisition date to 27 April 2025.
The following table summarises the consideration paid for the acquisition net
of £4.0 million of cash acquired, and the fair value of assets acquired at
the acquisition date:
£m
Total cash consideration net of cash acquired 106.2
Assessment of values on acquisition
Inventories 53.9
Trade and other receivables 13.2
Intangibles - licences with indefinite useful life 57.2
Intangibles - brand 0.5
Property, plant and equipment 1.0
Trade and other payables (32.3)
Provisions (0.4)
Right-of-use asset 1.9
Lease liabilities (1.9)
Deferred tax liability (15.5)
Total identifiable net assets 77.6
Goodwill 28.6
Total assets acquired 106.2
At 27 April 2025 an amount of £8.2 million, from the initial consideration
paid, was held with a third-party on retention and reported within debtors in
these accounts. The full amount was paid in June 2025 after the year-end date.
The goodwill recognised is attributable to the profitability of the acquired
business and is deductible for tax purposes. Intangible assets have been
recognised in relation to the licence with an indefinite useful life and the
brand name CENTO was acquired. The licence is non-amortising as the supply
agreement with Roberto Coin S.p.A. extends into perpetuity. The CENTO brand
has been assigned a five-year life.
Wholesale non-current assets are contained within the US operating segment. At
the year-end the values remain materially in line with the acquisition
balances.
The Group measured the acquired lease liabilities using the present value of
the remaining lease payments at the date of acquisition. The right-of-use
assets were measured at an amount equal to the lease liabilities.
Given the proximity of the acquisition to the beginning of FY25, the Group's
revenue and profit before tax had the acquisition been made on the first day
of the year would not be materially different to the result reported and
therefore has not been disclosed separately.
Acquisition-related costs have been charged to exceptional items in the
Consolidated Income Statement, as disclosed in note 4 to these Condensed
Consolidated Financial Statements.
Hodinkee, Inc.
On 3 October 2024, the Group signed and completed the acquisition of the trade
and assets of Hodinkee, Inc., a digital editorial content provider for luxury
watch enthusiasts. As part of the transaction, the entire share capital of
Hodinkee Insurance Holdings Inc. was acquired to retain the licence to sell
insurance. The acquisition completed for a total cash consideration of £10.7
million. The acquisition allows the Group to leverage existing growth
opportunities by growing sector leadership online, and also further enhances
the Group's ability to capture market share, particularly in the fast growing
US market.
The acquisition contributed revenue of £3.1 million from the 3 October 2024
acquisition date to 27 April 2025. The profit before tax contribution was not
material to the Group result.
The following table summarises the consideration paid for the acquisition, and
the provisional fair value of assets acquired at the acquisition date:
£m
Total cash consideration net of cash acquired 10.7
Initial assessment of values on acquisition
Inventories 0.2
Trade and other receivables 0.1
Intangibles - brand 2.9
Trade and other payables (1.4)
Total identifiable net assets 1.8
Goodwill 8.9
Total assets acquired 10.7
An amount of £0.6 million, from the initial consideration paid, is held with
a third-party on retention and is reported within debtors in these accounts.
This will be paid by the Group within 12 months of the acquisition date.
The goodwill recognised is attributable to the profitability of the acquired
business and is deductible for tax purposes.
An intangible asset has been recognised in relation to the Hodinkee brand
which has been assigned a ten-year life.
If the business combination had taken place at the beginning of FY25, the
contribution to revenue would have been £6.1 million. The profit before tax
is not material to the results of the Group and therefore has not been
disclosed separately.
Acquisition-related costs have been charged to exceptional items in the
Consolidated Income Statement, as disclosed in note 4 to these Condensed
Consolidated Financial Statements.
10. POST-BALANCE SHEET EVENTS
Following year-end, the £25.0 million share buyback programme was completed
with the payment and cancellation of 3,465,947 shares for a cash consideration
of £13.7 million. Following the cancellation there are 233,301,622 ordinary
shares in issue.
No further post-balance sheet events have been identified.
GLOSSARY
ALTERNATIVE PERFORMANCE MEASURES
The Directors use Alternative Performance Measures (APMs) as they believe
these measures provide additional useful information on the underlying trends,
performance and position of the Group. These measures are used for performance
analysis. The APMs are not defined by IFRS and therefore may not be directly
comparable with other companies' APMs. These measures are not intended to be a
substitute for, or superior to, IFRS measures.
The majority of the Group's APMs are on a pre-IFRS 16 basis. This aligns with
the management reporting used to inform business decisions, investment
appraisals, incentive schemes and banking covenants.
4 -WALL EBITDA
Net margin less showroom costs.
Why used
4-Wall EBITDA is a direct measure of profitability of the showroom operations.
Reconciliation to IFRS measures
£million FY25 FY24
Revenue 1,651.5 1,537.9
Inventory recognised as an expense (1,064.4) (981.6)
Other inc. supplier incentives 11.5 5.9
Net margin 598.6 562.2
Showroom costs (292.7) (289.1)
4-Wall EBITDA 305.9 273.1
Showroom costs include rental costs on a pre-IFRS 16 basis (i.e. under IAS
17). Refer to the IFRS 16 reconciliations below for further details.
4 -WALL EBITDA, EBITDA, ADJUSTED EBITDA AND ADJUSTED EBIT MARGIN
For each of these areas as defined above, the Group shows the measures as a
percentage of Group revenue.
Why used
Profitability as a percentage of Group revenue is shown to understand how
effectively the Group is managing its cost base.
Reconciliation to IFRS measures
£million FY25 FY24
Revenue 1,651.5 1,537.9
Net margin 598.6 562.2
36.3% 36.6%
4-Wall EBITDA 305.9 273.1
18.5% 17.8%
EBITDA (Unadjusted) 199.4 187.8
12.1% 12.2%
Adjusted EBITDA 192.3 178.9
11.6% 11.6%
Adjusted EBIT (segmental profit) 149.7 134.7
9.1% 8.8%
ADJUSTED EARNINGS BEFORE INTEREST AND TAX (ADJUSTED EBIT)
Operating profit before exceptional items and IFRS 16 impact.
Why used
Measure of profitability that excludes one-off exceptional costs and IFRS 16
adjustments to allow for comparability between years.
This measure was linked to management incentives in the financial year.
Reconciliation to IFRS measures
Reconciled in note 2 to the Condensed Consolidated Financial Statements.
ADJUSTED EARNINGS BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION
(ADJUSTED EBITDA)
EBITDA before exceptional items presented in the Group's Consolidated Income
Statement. Shown on a continuing basis and before the impact of IFRS 16.
Why used
Measure of profitability that excludes one-off exceptional items and IFRS 16
adjustments to provide comparability between years. This measure was linked to
management incentives in the financial year.
Reconciliation to IFRS measures
Reconciled within note 2 of the Condensed Consolidated Financial Statements.
ADJUSTED EARNINGS PER SHARE (ADJUSTED EPS)
Basic Earnings Per Share before exceptional items and IFRS 16 impact.
Why used
Measure of profitability that excludes one-off exceptional items and IFRS 16
adjustments to provide comparability between years. This measure was linked to
management incentives in the financial year.
Reconciliation to IFRS measures
Reconciled within note 6 of the Condensed Consolidated Financial Statements.
ADJUSTED PROFIT BEFORE TAX (ADJUSTED PBT)
Profit before tax before exceptional items and IFRS 16 impact.
Why used
Measure of profitability that excludes one-off exceptional items and IFRS 16
adjustments to provide comparability between years.
Reconciliation to IFRS measure
£million FY25 FY24
Segment profit (as reconciled in note 2 of the Financial Statements) 149.7 134.7
Net finance costs excluding exceptional items (35.8) (26.6)
IFRS 16 lease interest 22.2 20.8
Adjusted profit before tax 136.1 128.9
AVERAGE SELLING PRICE (ASP)
Revenue (including sales related taxes) generated in a period from sales of a
product category divided by the total number of units of such products sold in
such period.
Why used
Measure of sales performance.
Reconciliation to IFRS measures
Not applicable.
CONSTANT CURRENCY BASIS
Results for the period had the exchange rates remained constant from the
comparative period.
Why used
Measure of revenue growth that excludes the impact of foreign exchange.
Reconciliation
(£/US$ million)
FY25 Group revenue (£) 1,651.5
FY25 US revenue ($) 1,006.2
FY25 US revenue (£) @ FY25 exchange rate 785.6
FY25 US revenue (£) @ FY24 exchange rate 799.8
FY25 Group revenue (£) at constant currency 1,665.7
FY25 exchange rate £1: $1.281
FY24 exchange rate £1: $1.258
EARNINGS BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (EBITDA)
EBITDA before exceptional items presented in the Group's Consolidated Income
Statement. Shown on a continuing basis before the impact of IFRS 16 and
showroom opening and closing costs. These costs include rent (pre-IFRS 16),
rates, payroll and other costs associated with the opening or closing of
showrooms, or during closures when refurbishments are taking place.
Why used
Measure of profitability that excludes one-off exceptional and non-underlying
items, IFRS 16 adjustments and showroom opening and closing costs to allow for
comparability between years.
£million FY25 FY24
Adjusted EBITDA 192.3 178.9
Showroom opening and closing costs 6.9 8.9
Share of loss of joint venture and associates 0.2 -
EBITDA 199.4 187.8
Reconciliation to IFRS measures
EXCEPTIONAL ITEMS
Items that in the judgement of the Directors need to be disclosed by virtue of
their size, nature or incidence, in order to draw the attention of the reader
and to show the underlying business performance of the Group.
Why used
Draws the attention of the reader and to show the items that are significant
by virtue of their size, nature or incidence.
Reconciliation to IFRS measures
Disclosed in note 4 of the Group's Condensed Consolidated Financial
Statements.
FREE CASH FLOW
Cash flow shown on a pre-IFRS 16 basis excluding expansionary capex,
acquisitions of subsidiaries, exceptional items, financing activities and the
purchase of own shares.
Why used
Represents the cash generated from operations including maintenance of capital
assets. Demonstrates the amount of available cash flow for discretionary
activities such as expansionary capex, dividends or acquisitions.
Reconciliation to IFRS measures
£million FY25 FY24
Net decrease in cash and cash equivalents (15.4) (21.5)
Net financing cash flow 21.1 91.7
Interest paid (13.4) (9.2)
Lease payments (80.6) (68.1)
Acquisitions 106.9 44.2
Investment in joint venture and associates 0.7 -
Exceptional items - cash (note 4) 8.6 2.5
Expansionary capex 72.6 78.0
Disposal of European property, plant and equipment (2.7) -
Free cash flow 97.8 117.6
FREE CASH FLOW CONVERSION
Free cash flow divided by Adjusted EBITDA.
Why used
Measurement of the Group's ability to convert profit into free cash flow.
Reconciliation to IFRS measures
Free cash flow of £97.8 million divided by Adjusted EBITDA of £192.3 million
shown as a percentage.
LIQUIDITY HEADROOM
Liquidity headroom is unrestricted cash plus undrawn available facilities.
Why used
Liquidity headroom shows the amount of unrestricted funds available to the
Group.
Reconciliation to IFRS measures
£million FY25 FY24
Multicurrency revolving credit facility 275.0 225.0
Term loan ($125.0 million USD at 27 April 2025) 93.9 -
Total facility 368.9 225.0
Facility drawn (195.1) (115.0)
Unrestricted cash 79.7 99.3
Total headroom 253.5 209.3
NET CASH/(DEBT)
Total borrowings (excluding capitalised transaction costs) less cash and cash
equivalents and excludes IFRS 16 lease liabilities.
Why used
Measures the Group's indebtedness.
Reconciliation to IFRS measures
Reconciled in note 7 of the Condensed Consolidated Financial Statements.
NET MARGIN
Revenue less inventory recognised as an expense, commissions paid to the
providers of interest-free credit and inventory provision movements.
Why used
Measures the profit made from the sale of inventory before showroom or
overhead costs.
Reconciliation to IFRS measures
Refer to 4-Wall EBITDA.
RETURN ON CAPITAL EMPLOYED (ROCE)
Return on Capital Employed (ROCE) is defined as Adjusted EBIT divided by
average capital employed, calculated on a Last Twelve Months (LTM) basis.
Average capital employed is total assets less current liabilities excluding
IFRS 16 lease liabilities.
Why used
ROCE demonstrates the efficiency with which the Group utilises capital. This
measure was linked to management incentives in the financial year.
Reconciliation to IFRS measures
Adjusted EBIT of £149.7 million divided by the average capital employed,
which is calculated as follows:
£million FY25 FY24
Pre-IFRS 16 total assets 1,123.0 958.9
Pre-IFRS 16 current liabilities (275.0) (229.7)
Capital employed 848.0 729.2
Average capital employed 788.6 690.1
OTHER DEFINITIONS
EXPANSIONARY CAPITAL EXPENDITURE/CAPEX
Expansionary capital expenditure relates to new showrooms or offices,
relocations or refurbishments greater than £250,000.
LUXURY WATCHES
Watches that have a Recommended Retail Price greater than £1,000.
LUXURY JEWELLERY
Jewellery that has a Recommended Retail Price greater than £500.
SHOWROOM MAINTENANCE CAPITAL EXPENDITURE/CAPEX
Capital expenditure which is not considered expansionary.
IFRS 16 ADJUSTMENTS
The following tables reconcile from pre-IFRS 16 balances to statutory post-
IFRS 16 balances.
FY25 Consolidated Income Statement
Pre-IFRS 16 and exceptional IFRS 16 Exceptional
£million items adjustments items Statutory
Revenue 1,651.5 - - 1,651.5
Net margin 598.6 - (2.0) 596.6
Showroom costs (292.7) 65.9 - (226.8)
4-Wall EBITDA 305.9 65.9 (2.0) 369.8
Overheads (106.5) - (7.0) (113.5)
EBITDA 199.4 65.9 (9.0) 256.3
Showroom opening and closing costs (6.9) 4.7 - (2.2)
Share of loss of joint venture and associates (0.2) - - (0.2)
Adjusted EBITDA 192.3 70.6 (9.0) 253.9
Depreciation, amortisation, loss on disposal, impairment of fixed assets and (42.6) (50.9) (46.5) (140.0)
lease modifications
Adjusted EBIT (Segment profit) 149.7 19.7 (55.5) 113.9
Net finance costs (13.6) (22.2) (2.2) (38.0)
Adjusted profit before tax 136.1 (2.5) (57.7) 75.9
Adjusted Basic EPS 41.6p (0.8)p (18.0)p 22.8p
FY25 Balance Sheet
IFRS 16
£million Pre-IFRS 16 adjustments Post-IFRS 16
Goodwill and intangibles 304.1 - 304.1
Property, plant and equipment 191.9 0.5 192.4
IFRS 16 right-of-use assets - 358.6 358.6
Investment in joint venture and associates 0.5 - 0.5
Inventories 447.4 - 447.4
Trade and other receivables 71.1 (10.6) 60.5
Trade and other payables (305.5) 46.0 (259.5)
IFRS 16 lease liabilities - (454.6) (454.6)
Net debt (96.2) - (96.2)
Other (47.0) 33.4 (13.6)
Net assets 566.3 (26.7) 539.6
FY24 Consolidated Income Statement
Pre-IFRS 16 and exceptional IFRS 16 Exceptional
£million items adjustments items Statutory
Revenue 1,537.9 - - 1,537.9
Net margin 562.2 - 1.7 563.9
Showroom costs (289.1) 64.9 - (224.2)
4-Wall EBITDA 273.1 64.9 1.7 339.7
Overheads (85.3) - (6.2) (91.5)
EBITDA 187.8 64.9 (4.5) 248.2
Showroom opening and closing costs (8.9) 5.3 - (3.6)
Adjusted EBITDA 178.9 70.2 (4.5) 244.6
Depreciation, amortisation, loss on disposal, impairment of fixed assets and (44.2) (53.0) (27.4) (124.6)
lease modifications
Adjusted EBIT (Segment profit) 134.7 17.2 (31.9) 120.0
Net finance costs (5.8) (20.8) (1.3) (27.9)
Adjusted profit before tax 128.9 (3.6) (33.2) 92.1
Adjusted Basic EPS 38.0p (1.2)p (11.8)p 25.0p
FY24 Balance Sheet
IFRS 16
£million Pre-IFRS 16 adjustments Post-IFRS 16
Goodwill and intangibles 215.7 - 215.7
Property, plant and equipment 193.1 (1.7) 191.4
IFRS 16 right-of-use assets - 381.8 381.8
Inventories 393.3 - 393.3
Trade and other receivables 36.2 (11.6) 24.6
Trade and other payables (263.3) 46.8 (216.5)
IFRS 16 lease liabilities - (460.4) (460.4)
Net cash 0.7 - 0.7
Other (29.2) 21.6 (7.6)
Net assets 546.5 (23.5) 523.0
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END FR PKNBBPBKKNOKRecent news on Watches of Switzerland
See all newsREG - Watches of Switzlnd. - FY25 Results
AnnouncementREG - Watches of Switzlnd. - Total Voting Rights
AnnouncementREG - Watches of Switzlnd. - Holding(s) in Company
AnnouncementREG - Watches of Switzlnd. - Transaction in Own Shares
AnnouncementREG - Watches of Switzlnd. - Transaction in Own Shares
Announcement